Insolvencies Ease Slightly but German Industry Still Reeling, Foundries Warn of €65 Billion Value Loss
11.06.2026 - 02:59:05 | boerse-global.de
Germany's industrial sector remains under severe strain, according to data from the Halle Institute for Economic Research (IWH), which recorded 1,518 insolvencies in May 2026. While that represents a 15 percent decline from April, the figure still sits 57 percent above the pre-crisis average. Transport and warehousing companies are particularly affected, squeezed by rising fuel costs.
The broader downturn is mirrored across manufacturing. Industrial orders fell 3.8 percent in April, with the electrical industry plunging 16.3 percent, mechanical engineering down 7.4 percent, and autos shedding 5.3 percent. The Paul Köster GmbH, a special machinery builder for the car sector from Medebach, filed for insolvency under self-administration on June 8, hoping to safeguard 320 jobs through restructuring.
Foundries in Postwar Crisis
The downturn has hit Germany’s foundry sector especially hard. The Federal Association of the German Foundry Industry (BDG) calls it the worst crisis since the Second World War. The production index now stands 35 percent below its 2018 level, driven by high energy and carbon costs, plus mounting bureaucracy.
A study by IW Consult warns that if production falls another 50 percent, value-added losses would reach €65 billion, with 588,000 jobs at risk. The BDG criticizes the federal government’s industrial power price subsidy of over €30 billion, arguing that many foundries never see the benefit.
Nord Alu Sees Glimmer of Hope, Opel Pushes Forward
At North Alu GmbH in Neumünster, production has been idle for more than a week, and workers are waiting for unpaid wages. Crisis talks on Wednesday at the town hall brought together management, the works council, IG Metall, the Employment Agency, and the Economics Ministry. The company pledged to resume production and pay outstanding salaries soon. Participants called the outcome a first step toward saving the site.
Separately, at the Opel plant in Rüsselsheim, a deal was also struck Wednesday: a successor model to the Astra will be built there, and apprentices will receive permanent contracts.
Political Response and Regional Pushback
The deepening crisis has reached the Chancellery. On Wednesday, top employer and union representatives met to discuss tax, bureaucracy, and labor law reforms. Chancellor Merz called for joint proposals to strengthen Germany as a business location.
Regional groups are pressing for action. The Lausitzrunde, a coalition from the Lusatia region, has written to the Chancellery demanding a clear commitment to industrial production and criticizing plans to favor new power plants in southern Germany. Saarland’s Economics Minister Jürgen Barke is seeking compensation for steel companies, warning that the multibillion-euro shift to climate-neutral production must not be undermined by changes to EU emissions trading.
While the Perlon Group was rescued by a Chinese investor (purchase contract effective June 3), the liquidation of the Hamburg coffee roastery Torrefaktum illustrates ongoing hardships—failed lease talks and pandemic-era debts finally brought the mid-sized company down.
